EU questions Palestinian funding following Hamas attack

BRUSSELS — The weekend attack by Hamas on Israel may affect EU funding to Palestinian territories as Europe considers its response to the strike. 

The surprise attack by Hamas — the armed Palestinian group that has been designated a terrorist organization by the EU — caught much of the world by surprise, killing some 700 Israelis, with 400 Palestinians killed in retaliation.

European Commission spokesperson Ana Pisonero said Monday that the attack “might affect our current and our future development assistance” to the region. The statement opens debate on an issue that has long been a concern for Israel: outside funding in Palestinian territories. 

The EU contributed around €300 million to Palestinian entities last year. This included millions of euros to the Palestinian Authority to help pay salaries of civil servants and fund projects, helping refugees via a United Nations agency, and funding some nongovernmental agencies.

But speaking on Monday, the EU spokesperson suggested this funding stream is now up for debate. 

Citing ongoing discussions, Pisonero said, “The Commission is also currently discussing and assessing how the recent tragic events might affect our current and our future development assistance.”

EU foreign ministers are likely to discuss the issue when they convene via video link Tuesday afternoon for an emergency meeting to discuss the rapidly developing situation in the Middle East. 

Josep Borrell, the EU’s foreign policy chief, issued a statement on Sunday on behalf of the EU, condemning “in the strongest possible terms the multiple and indiscriminate attacks across Israel by Hamas.” Several countries — including Ireland, Luxembourg and Denmark — sought that a reference for the need to deescalate be included in the joint text, but this was opposed by others including Austria, three officials who were granted anonymity to discuss sensitive matters told POLITICO. This reflects a belief among some quarters that a call for deescalation could be seen as describing the actions of both sides as equivalent.

The EU has previously faced criticism from Israeli officials about its funding for Palestinian organizations.

On Monday, European Commission spokesperson Eric Mamer said there are “strict controls in place in order to ensure that there is no direct or indirect financing [for Hamas].”

But given the attack over this weekend, scrutiny of Palestinian organizations — and how EU money might reach them — is almost certainly set to intensify. 

The EU, which supports a two-state solution in the Middle East, has long attempted to manage a range of views among its 27 member countries over conflicts with Israel. France, the Nordic states and Ireland traditionally support a position that is seen by other countries as too pro-Palestinian. 

Over the weekend, the European Commission’s headquarters was illuminated by the Israeli flag, with President Ursula von der Leyen tweeting a number of times about the EU’s steadfast support for Israel. Some members of the European Parliament and commentators criticized this move.